Have you ever thought of the Nike Swoosh tick to represent our 2012 real estate market? Well this is the trend that the real estate market is taking going into this new year.
Jed Kolko, the chief economist at Trulia.com, insisted that the cities that are most likely to continue to have strengthening real estate markets were the rather smaller ones. The listed locations were our city of Boston, as well as Austin, San Jose, Houston, and Rochester in New York state. Kolko also shares that along with mortgage rates which he feels will rise, the increased need for construction and growth in many of these small cities is due to the increased demand for rental units, thus allowing the landlords to obtain higher rents.
Rich Arzaga, the founder and CEO of Cornerstone Wealth Management, feels that there is a rising trend of individuals only buying homes later in their lives. The younger generations, or echo boomers, as he termed this demographic of society, will continue to rent. Therefore, this segment will increase the necessity for such rental properties all whilst causing greater rates being achieved by landlords.
Jeffrey Rogers, President of Integra Realty Resources, alsoiteratesthe sentiments from Kolko. Rogers explains how multi-family units were the ones that were continuously funded for new developments in recent memory despite the economic recession. As a result, there were more units available for rental purposes simply because there had to be to meet the demands of the (typically) younger clientele.
All in all, we must not get ahead of ourselves. Kolko and the other experts all are optimistic about the future real estate outlook, but know better than to jump the gun and go on record saying things are back to normal. The message from this article is that even with a fantastic 2012, we may not be where we were some years ago in terms of the strength of the real estate market. It could be by the end of 2012 or even years later when this much awaited achievement occurs. So back to the Nike Swoosh mentioned in the beginning. This is where what we are now facing. Our market did go down very sharply to where it felt like rock bottom. It is now the moment for us to ride this market up, as gradually as possible, to climb back and recover, slowly but surely.
More Information: Reuters.com